The cars you can afford with your salary in South Africa in 2024
The prices of new cars have increased substantially in South Africa, potentially shifting the number of new car options available to you depending on your salary.
In 2024, more than 70% of all the cars in South Africa now cost more than R500,000.
The latest TransUnion Vehicle Pricing Index (VPI) shows that while the average price of new vehicles stays just below inflation year-on-year, some body types outstripped CPI in the first quarter of 2024.
The index measures the relationship between the increase in vehicle pricing for new and used vehicles from a basket of passenger vehicles incorporating 15 top-volume manufacturers.
According to the report, the price of new vehicles increased by 4.7% on average in Q1 2024—just under inflation by 0.5%, which was recorded at 5.2%.
The report noted that the price increases in three segments further exceeded CPI.
On average, the price of all body types increased over the period, with hatchbacks and crossovers seeing the steepest increases at 8.4% and 6.4%, respectively, in Q1 2024.
Other YoY price increases included premium hatchbacks (6.1%), hybrids (5.1%), SUVs (4.2%), and Electric (1.3%).
It’s concerning to see that hatchbacks, traditionally the most affordable segment in car brands, have seen the steepest price increases year over year.
This trend is largely attributed to the local economy’s poor performance and the volatile rand/US dollar exchange rate, making it substantially more expensive to import and sell vehicles in recent years.
Consequently, the availability of affordable cars for those earning at the lower end of the salary spectrum has decreased.
As of July 2024, no cars are available for under R180,000, with the sole exception being Suzuki’s S-Presso priced at R178,900 — a situation not seen a few years ago.
Throughout 2023 and 2024, motorists have faced the challenge of increasingly expensive cars, a result of both national and international factors like inflation, and shortages of chips and other auto parts, which have impacted the industry throughout this year.
What you can afford
Industry experts still recommend that prospective buyers shouldn’t spend more than a quarter (25%) of their monthly income on vehicle-related costs.
So, if you earn R20,000 per month, your total vehicle expenses should not exceed R5,000. And this should apply to the whole vehicle expense, including:
- Vehicle instalments
- Insurance premiums
- Fuel costs
Below, BusinessTech looked at what you can afford to buy on your monthly salary in South Africa, using the above assumption that people will not spend more than 25% of their gross monthly income on vehicle financing.
The calculations were made using Wesbank’s repayments calculator and include the assumption of a 0% deposit for car financing. They also exclude any additional fees incurred during the loan’s inception into the calculation.
Finally, the cars are financed over five years (60 months) at an annual interest rate of 11.75%. This follows the South African Reserve Bank’s recent decision to hold rates in July.
These calculations are purely for comparison purposes and are not meant as financial advice.
| Price of car | Monthly repayment | Minimum gross monthly salary required |
|---|---|---|
| R180,000 | R4,077 | R16,300 |
| R200,000 | R4,519 | R18,100 |
| R300,000 | R6,731 | R26,900 |
| R500,000 | R11,154 | R44,600 |
| R750,000 | R16,684 | R66,700 |
| R1,000,000 | R22,214 | R88,900 |
| R2,000,000 | R44,332 | R177,300 |
| R5,000,000 | R110,687 | R442,800 |
Below is an overview of the new cars you can currently buy in South Africa at each of these price points.
It must be noted that this is not a comprehensive list of all the cars that can be afforded under the salary bracket, but rather a selection of notable options.
Earning between R16,000 – R17,000
Suzuki S-Presso 1.0 GL – R178,900
Suzuki Celerio 1.0 GA – R188,900
Toyota Vitz 1.0 – R189,900
Proton Saga 1.3 – R209,900
Earning R20,000
Suzuki DZire 1.2 GA – R211,900
Renault Kwid 1.0 Climber – R217,999
Suzuki Swift 1.2 GA – R213,900
Hyundai Grand i10 1.0 – R224,900
Nissan Magnite 1.0 Visia manual – R240,000
Between R23,000 – R26,000
Toyota Starlet 1.5 Xi – R252,100
Citroen C3 1.2 Max – R255,900
Mahindra XUV300 1.2T W4 – R277,999
Chery Tiggo 4 Pro 1.5 LiT manual – R279,900
Kia Picanto 1.2 EX manual – R284,995
Volkswagen Polo Vivo hatch 1.4 Comfortline – R288,500
Between R29,000 – R35,000
Hyundai Venue 1.2 Executive – R329,900
Toyota Starlet Cross 1.5 XR manual – R339,300
Volkswagen Polo hatch 1.0TSI 70kW – R357,500
Omoda C5 1.5T 230T – R359,900
Kia Sonet 1.5 LX – R366,995
Mazda Mazda2 1.5 Dynamic – R371,300
Haval Jolion 1.5T Luxury – R389,450
Between R40,000 – R45,000
Chery Tiggo 7 Pro – R442,900
Mazda CX-3 2.0 Dynamic – R445,700
Mitsubishi ASX 2.0 – R459,990
Volkswagen T-Cross – R465,800
Toyota Corolla Cross 1.8 Hybrid XS – R486,100
Renault Captur – R489,999
Between R50,000 – R65,000
Ford Territory 1.8T – R576,000
Audi Q2 35TFSI – R612,400
Ford Puma 1.0T ST-Line – R614,400
Toyota Fortuner 2.4GD-6 – R679,100
GWM Ora 03 300 Super Luxury – R686,950
BMW 118i – R691,716
Volvo XC40 B3 Essential – R720,000
Between R80,000 – R90,000
Mercedes-Benz A200 hatch AMG Line – R850,491
GWM Tank 300 2.0T HEV Super Luxury 4×4 – R851,950
Volvo EX30 Plus – R917,900
Toyota Hilux 2.8GD-6 48V double cab 4×4 Legend – R921,800
Mercedes-Benz GLA200 Progressive – R922,841
BMW M235i xDrive Gran Coupe – R982,096
Lexus NX 250 EX – R986,800
Upwards of R100,000
BMW M440i xDrive Gran Coupe – R1,458,936
Jaguar E-Pace P300e AWD R-Dynamic SE – R1,681,900
Defender 110 D350 X-Dynamic HSE – R1,849,900
Toyota Land Cruiser 300 3.5T GR-Sport – R2,095,100
Porsche 911 Carrera 4 coupe – R2,477,000
Bentley Continental – R5,120,000
Ferrari Roma – R6,804,500
Read: R308 per month relief for car owners in South Africa is coming
Loading ...
